Tesla to make battery packs for SMART EV

Elon Musk, CEO of Tesla Motors, announced Tuesday in Detroit that Tesla is producing the battery pack for Daimler AG's Smart EV. The companies, which have been partnering on electric powertrain technology for almost a year and a half, will produce 1,000 vehicles in 2009 and 2010, and Musk said the deal could grow into the "tens of thousands" of Smart EVs after that. Daimler already has an existing relationship with German tier one automotive supplier Continential who will supply a 25kg lithium-ion battery pack, with cells from Johnson Controls-Saft, to be used in the new Mercedes S400 BlueHYBRID hybrid-electric car available from the middle of 2009.

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